Auto supplier to invest $17 million in new manufacturing center in Pontiac

South Korea-based subsidiary awarded $685,000 Michigan Business Development Program grant

Supplier offered a 50 percent property tax abatement from Pontiac

An auto supplier plans to invest $17 million into a new manufacturing center in Pontiac in an effort to be closer to key customers.

erae AMS USA Manufacturing LLC, a subsidiary of South Korea-based erae AMS Co. Ltd., which supplies driveline systems, chassis, and electronics systems and components, will create 137 jobs through the project, according to a Wednesday news release from the Michigan Economic Development Corp.

The supplier was awarded a $685,000 Michigan Business Development Program performance-based grant, which was green-lighted by the Michigan Strategic Fund.

The city of Pontiac, which was chosen over other sites in Indiana and Ohio, is backing the project with a 50 percent property tax abatement, the release says.